Compelling Story-line Emerging13 Nov 2020 14:00
Don't be afraid of buying into a company purely on the basis that it's below 1p. This company was sitting at 2.7p in March. Since then, it has done nothing but add to it's portfolio. Since then it has completed the AAOG acquisition, applied for the new 25 year licence, signed a joint venture agreement with a local Congo operator, acquired a percentage right to two Tunisian fields, started negotiations for a third Tunisian prospect, increased it's gas production in Italy, presently negotiating a plan for payment of $5.3m, began court proceedings to recover $3.1m and have closed the loss making Azerbaijan operation. How on earth can you believe this company should be valued at 0.035p.
I'm gonna tell you a story (good old Max, god rest him).
You might remember a few months back when you could buy Valirx at 0.012p. The incompetent management allowed the companies financial position to deteriorate to a point it could no longer continue to function. A group of shareholders got together and eventually forced the CEO alongside many of the other board members to resign and immediately formed a new board of directors. It was at this point that they committed to a newly formed financial restructuring and set the company up as something completely different.
You might think what's the point of all this, well, the point is the products it was bringing to life were multi million dollar products and the fundamentals of Valirx were completely intact. The only problem it had was the bosses didn't know how to run a business. It was in effect in the same position as a startup, a brand new company with a new BOD and new financing and a snip at the consolidated price of 0.3p. Obviously a massive loss to those that held before the transformation, but a golden opportunity for anyone who could see it's newly found potential. You could have sold these at 61p in September, a nice prize if you were up for it.
In parallel, Zenith had reached a point where it's share price was artificially driven down by the Covid crash and has never been allowed by the market to redeem it's true value. You are in effect seeing the same transformational event. By buying into Zenith, you are buying into a new company with a new fixed foundation, regardless of the Tilapia licence. Someone on here said it's all or nothing with regards to the licence, well that's not the case. If they fail to get the licence they are left with a bunch of money making prospects all purchased for snip, some with substantial sums of money attached and all have the potential to produce more. We are not talking about prospects we will be paying through the nose for over the next 10 years, they are all very nearly paid for from ready cash and proceeds from production. So rid yourselves of those negative waves man and spread the word.
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